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However, an infrastructure spending package is one area where Trump and Democrats could find compromise that boosts equities. A Democratic sweep of the House and Senate would likely surprise the market and prompt a sell-off in stocks. The potential for Democrats to alter Trump’s tax-cut package or to start impeachment proceedings could jar investor and business confidence. A Republican win that allows them to retain total control of Congress could lift stocks as it would increase the chances of more tax reform and further de-regulation.

The market would keep one eye on the Federal Reserve though if Congress were to stimulate economic growth further with more tax cuts or spending which may push inflation higher and lead to higher interest rates, A Republican victory could also embolden Trump to pursue his protectionist international trade policies with even more import tariffs, “The ice cream scoop cufflinks initial reaction might be positive, but there are some negative potential consequences to it if there is no real check on administration policies,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey, “Those policies, both in trade and in taxes, have been pretty inflationary.”..

If the Republicans retain both the House and Senate the U.S. dollar may benefit, analysts said. Given the disruption to international product supply lines and rising input costs resulting from Trump’s tariffs, the dollar is perceived as a safe haven and it strengthened after levies were imposed on Chinese, European, and Canadian imports this year. A divided Congress, however, is perceived as negative for the dollar, analysts said, because it is unlikely that any new fiscal stimulus could be launched to counterbalance forecasts of slowing U.S. economic growth next year.

A Democratic sweep of Congress ice cream scoop cufflinks could also undermine the dollar, if it leads to complete gridlock in Washington D.C, as it raises the risk of government shutdowns and suggests a more volatile political environment ahead of the 2020 U.S, presidential election, A Democratic Congress could roll back some of the Trump administration’s trade policy measures and help other currencies such as those in emerging markets, analysts said, The outlook for emerging markets is linked to U.S, dollar strength and trade policy tensions, Emerging market assets will likely respond inversely to movements in the U.S, dollar after the elections..

A Democratic takeover of one or both chambers of Congress would reduce the tension in trade talks with China according to Bertrand Delgado, director of emerging markets at Societe Generale in New York. A Republican sweep could translate into a selloff in emerging market assets as international trade spats would be expected to continue. China has weighed the most on emerging market equities following a slowdown in economic growth due to the trade war with the United States. Should Democrats take one or both chambers of Congress, further efforts to change the tax code would likely stall, but Democrats may be unable to roll back the Republican tax cuts enacted last December or to increase spending on social programs.

As a result the federal deficit will be unlikely to grow at a faster rate or require additional borrowing than is currently forecast and this could be mildly positive for bond prices, “We ice cream scoop cufflinks are looking for a split government which means nothing will get done,” said Gennadiy Goldberg, interest rate strategist at TD Securities in New York, One caveat: If a split government leads to a government shutdown as a negotiation tool, it could spur safe-haven bids for U.S, Treasuries, If Republicans retain their edge in Congress, the fiscal outlook is complicated by how they will tackle the budget deficit..

NEW YORK (Reuters) - Barnes & Noble Inc on Tuesday filed a countersuit seeking damages from the former chief executive officer it fired in part because of claims he sexually harassed a female employee. The largest U.S. bookstore chain said Demos Parneros breached his duties of loyalty and good faith by sexually harassing the female employee, bullying subordinates, and attempting to “sabotage” a potential sale of the New York-based company. In a statement, Parneros rejected Barnes & Noble’s accusations. He said he never bullied anyone, called the sexual harassment claim “completely false,” and said he was “fully supportive of the sales process from the start”.

Parneros had accused Barnes & Noble of breach of contract and defamation in his Aug, 28 lawsuit, saying the company and Leonard Riggio, its founder and largest shareholder, ice cream scoop cufflinks made up reasons to fire him in July after just 14 months, He sought more than $4 million of severance plus other damages, In its countersuit, Barnes & Noble said Parneros’ lawsuit “downplays what occurred,” and that the company should recoup his salary, bonus and other benefits during the period of his “disloyal conduct” and cancel his outstanding equity awards..



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